Are you better off?

When a politician asks “Are you better off now than you were four years ago?” he’s really saying “ask not what you can do for your country, ask what your country can do for you.” And at this point it would have to be an executive order changing the laws of arithmetic. (AP file photo)

Listen to: Dave Ross Commentary

The big weekend talk show question was Ronald Reagan’s famous take-down of Jimmy Carter in 1980 “Are you better off now than you were four years ago.”

Should be easy.

If you had a job in 2008, and you can’t find one now, the answer is no. And a lot of Americans are in that situation.

Now suppose you are an investor. September 4, 2008 the Dow stood at 11,188. It’s now at about 13,000, so you’re somewhat better off.

However if we ask the question closer to the election, we’re looking back at a Dow closer to 8000. So the answer may change.

But behind the “are you better off” question is the real question which is, what are you, Mr. Politician, going to do about it?

Reagan, of course, cut taxes; but back then there were taxes to cut. Top tax rate in 1980 was 70%. He cut interest rates. But there were interest rates to cut. I bought a house in 1980, mortgage was 15%. Unheard of today.

He also boosted defense spending, and he deregulated banks and savings & loans. Well we’ve tried all that.

And keep in mind, it’s true Reagan fixed the economy and tax revenues went up, but so did the national debt, up by 286%. Not an option!

When a politician asks “Are you better off now than you were four years ago?” he’s really saying “ask not what you can do for your country, ask what your country can do for you.” And at this point it would have to be an executive order changing the laws of arithmetic.

Listen to: John Curley argues Dave Ross after Reagan commentary